The Rossmann brand optimised logistical processes due to the GS1 label in 2013. Since then they have observed tangible benefits of this solution.
In 2013 the German chain of drugstore decided to implement the GS1 logistics label in some of its suppliers.
GS1 is a standardised label placed on any logistic unit (e.g. a pallet) which allows to automatically read data encoded in the barcode. With it manufacturers, wholesalers, distributors, retailers, carriers or logistics operators can communicate to each other information about transported goods in a standardised way.
The aim and the idea behind the project implemented by the chain of drugstores was primarily:
- reducing the number of errors during logistics data entry at the time of the adoption of goods,
- shortening the time of supply acceptance.
The range of data that should contain the label includes:
- the production batch designation,
- the expiry date,
- the gross mass of the logistic unit,
- order number.
Chain suppliers have used the opportunity to generate the labels using simple tools.
Benefits of using labels
In the end thanks to this solution Rossmann managed to shorten the process of accepting supplies in distribution centres from 5 stages (unload, unpacking the pallet and scanning the item code, counting, entering data into the system and printing labels) to 2 stages:
- acceptance of the goods,
- scanning the label generated by the supplier and label printing.
Detailed analysis shows the measurable effects of implementing the labels. What is important, the time for accepting the delivery increased by 25%, thanks to which it was possible to increase the number of operation with the involvement of a similar number of people. What is important, the number of errors when entering data in the course of delivery has decreased.
The benefits motivated the company to make a decision about implementing the project in the nearest future in subsequent domestic and foreign suppliers. In accordance with the plan it will completely eliminate the existing labels that will replace the GS 1 labels used by suppliers.
The advantages of such solutions have also been noticed by the drugstore chain suppliers who participated in the project. They saw that the use of said labels shortens the downtime of vans when unloading. Many of them decided to use GS1 in their own warehouse processes – acceptance from the production, storage, order picking and shipping.
Photo: wikipedia.org